Finding Text
2022-001 U.S. Department of Health and Human Services Federal Assistance Listing Number 93.107 Area Health Education Centers - Award Year 2022, Award Number - 5 U77HP03042-24-00 Criteria or Specific Requirement ? Period of Performance - A non-federal entity may charge to the federal award only allowable costs incurred during the period of performance (45 CFR 75.309). Condition ? One expenditure was incurred outside of the applicable period of performance for the grant. Questioned Costs ? $2,500 of expenses charged to the Area Health Education Center (ALN 93.107), grant award number 5 U77HP03042-24-00. Context ? Out of a population of 118 expenditures totaling $939,314, 12 expenditures totaling $34,059 were tested to verify if the transaction charged to the grant was incurred within the period of performance. One expense for $2,500 charged to the award near the end of the period of performance (9/1/2020-8/31/2021) was related to and incurred outside the period (related to services provided for the period 10/1/2021-9/30/2022). The sample was not, and was not intended to be, a statistically valid sample. Effect ? One expenditure was outside the period of performance. Cause ? Oversight by management. The grant renews on an ongoing basis and the expense was charged to the incorrect grant period. Identification as a Repeat Finding ? Not applicable. Recommendation ? The University should implement monitoring policies and procedures to ensure that expenditures fall within the appropriate budget period. Views of Responsible Officials and Planned Corrective Actions ? Recognizing this expense was monitored through the internal control framework and still resulted in a human error, the proposed corrective action plan will focus on two areas: correcting the cost to the appropriate budget period, and coaching the members of the control system regarding the period of performance, specific to contractual services, membership services, and subscription services that are delivered over time to heighten awareness.